Basing next year’s crop planting decisions on these reports often led to famines, and sometimes even mass starvation of entire regions.

Poor data = Bad decisions.

The Soviet crop reports are now a famous example of an unreliable measure that led to disastrous consequences. Because of the false reporting, poor decisions were made. Eventually it became clear to even the Soviets that attempting to centrally micro-manage a major economy is an act of folly.

Too much of this and too little of that were produced. Cement, steel, and auto quotas harmed rather than helped for obvious reasons; poor information flows assured that production decisions were late or flawed or both. All this contributed dearly to the Soviet economy’s collapse.

The lessons here are instructive and simple:

centralized management of complex systems doesn’t work, and

bad data leads to bad outcomes

Today’s stock and bond markets are no different than the Soviet crop reports of old. They mainly represent what a small committee of central planners believe are the right numbers to achieve very broad macro-economic goals.

Enormous damage has already been done by the interventions and distortions resulting from the pursuit of the delusional aims of todays central planners (with the world’s central banking cartel being the most culpable).

But it’s poised to get a lot worse from here.

…

When it comes to repaying the current global debt levels of ~310 % of GDP, we can confidently predict that such a debt load can never be repaid. They can only try to roll it over as long as they can — which can’t go on much longer without real consequence. Mounting losses are certain at this point.

When it comes to underfunded promises and entitlement programs, such as pensions and social security (clocking in at nearly 800% of GDP!), there’s really only one all-important question that matter at this point: Who’s going to eat the losses?

In Part 2: It’s Even Worse Than You Think, we reveal the much further extent of the racket being run against the public by the world central banking cartel, and how it’s efforts to continue this racket have sentenced us all to another massive financial/economic crisis — one that is both now inevitable, necessary, and overdue.

By preventing that which should happen, the central banks have set the stage for an enormously dangerous and disruptive market crash. The kind that forces markets to close for days and weeks on end. The kind that leads to major banking crises punctuated by ‘holidays’ where depositors can not access their money. The kind where disorder and social unrest becomes a real risk.